The following estimates relate to the Miranda Processing Company for the year ended December 31, 2012.

	Departments
	Processing			Servicing
	W	X	Y	A	B
Indirect Costs	$176,000	$156,500	$141,000	$101,000	$90,000
Dept. Bs Costs	35%	40%	15%	10%	-
Dept. As Costs	50%	20%	30%	-	-
Hours Worked	3,000	3,300	3,750

Overheads are applied to production on the basis of the number of hours worked in each process.

During March 2013 an order was received which involved the following:

Process
	W	X
Input material 7,000 kg	$71,000	-
Material added	$7,300	$8,070
Labour cost	$26,700	$20,160
Normal losses	5%	4%
Output	6,450 kg	6,242 kg
Process hours worked	500	300
Scrap value of losses	$7.00/kg	$15.00/kg

Calculate an overhead absorption rate for each process.

Use process accounts to calculate the cost of the order processed during March.

Prepare the abnormal gain account.

Given that the actual overheads incurred in processing department W turn out to be $350,000 and the actual processing hours worked 3,500, whilst the actual overheads incurred for processing department X turn out to be $165,000 and actual processing hours 3,000, calculate the under- or over- recovery of overheads for each department.